Fair Claim Mechanism

The "Fair Claim Mechanism" ensures equitable distribution of project tokens among investors participating in Colony's Early-Stage Program. This mechanism is designed to prevent any individual from disproportionately claiming a large share of project tokens, thereby promoting fairness and transparency throughout the token distribution process.

Implemented to safeguard the vesting pool from being drained by a few individuals, the Fair Claim Mechanism ensures that every individual can only claim a proportional amount of project tokens during a specific period. For example, if the vesting contract contains 100 unlocked project tokens and 900 locked project tokens, only 10% of the ceTokens swapped will be utilized to claim the unlocked tokens, while the remaining ceTokens will be locked for a particular period, such as one week (this depends on projects/deals' vestings etc).

Once the lockup period is over, users can reclaim their locked ceTokens and perform another project token claim on the vesting contract. This mechanism guarantees that all ceToken owners can claim their initial share of project original tokens during the vesting initial unlock.

If a user makes another claim for project tokens on the vesting contract while they still have some ceTokens locked, the amount of their locked ceTokens will increase, and consequently, the lockup period for all their locked ceTokens will be reset.